Firms do not become experienced in international business overnight, but rather progress gradually through an internationalization process. The process is triggered by different motivations to go abroad. The motivations can be proactive or reactive. Proactive motivations are initiated aggressive management, whereas reactive motivations are the defensive response of management to environmental changes and pressures. Firms that are primarily stimulated by proactive motivations are more likely to enter international business and succeed. For example Mcdonald, By expansion aggressive throughout world, McDonald's made as symbol globalization and spreaders lifestyle Americans. Kroc show the whole world how to apply the advanced management pross. In order to be advanced by way of McDonald's, the companies must establish the basic principles of services they offer, the job breaks down into parts, and then continually refine reassemble and many steps to run the system without restraints. Today, companies involved in the pizza, insurance claims processing, or selling toys benefit from the type of system pioneered by Ray Kroc. Until the level when such operations maintain quality control, and maintain customer satisfaction, profits will flow.
In going abroad, firms encounter multiple problems and challenges, which range from lack of information to mechanics and documentation. In order to gain assistance in its initial international experience, the firm can make use of either intermediaries or facilitators. Intermediaries are outside companies that actively participate in an international transaction. They are export management companies or trading companies. In order for these intermediaries to perform international business functions properly, however, they must be compensated. This will result in a reduction of profits. For example DHL Express Businessman Bandung Community Help Maintain Competitiveness, the company's leading express service provider in the world, today held a business forum in order to assist importers and exporters deal with the issue of Bandung in the world trade recession better through a deep understanding of systems and regulations of local and international trade.
International facilitators do not participate in international business transactions, but they contribute knowledge and information. Increasingly, facilitating roles are played by private sector groups, such as industry associations, banks, accountants, or consultants, and by universities and federal, state, and local government authorities. For example Florida International University (FIU), Their mission for business community—to whose economic development we contribute by providing a talented, diverse, and highly qualified pool of business professionals and leaders along with educational programs, applied research, and collaborate projects.
Apart from exporting and importing, alternatives for international business entry are licensing, franchising, and local presence. The basic advantage of licensing is that it does not involve capital investment or knowledge of foreign markets. Its major disadvantage is that licensing is that advantage is that licensing agreements typically have time limits, are often proscribed by foreign governments, and may result in creating a competitor. The use of franchising as a means of expansion into foreign markets has increased dramatically. Franchisors must learn to strike a balance between adapting to local environments and standardizing to the degree necessary to maintain international recognizability. For example Starbucks, in one of the their successful concept is "Think outside the box". Starbucks’ strength lies in its ability to spot opportunities, even if that means debunking accepted retail trends. Starbucks’ ability to think outside the box is a common trait that propelled other small businesses to the big league.
Full ownership is becoming more unlikely in many markets as well as industries, and the firm has to look at alternative approaches. The main alternative is interfirm cooperation, in which the firm joins forces with other business entities, possibly even a foreign government. Multinational companies that want to tap natural resources dominate the market (both existing and profitable or emerging) and keep production costs down by hiring cheap labor in developing countries, usually the foreign investors of this. Examples of 'classic' of this kind of FDI such as Cargill, Exxon, BP, Heidelberg Cement, Newmont, Rio Tinto and Freeport McMoRan, and INCO all have direct investment in Indonesia. One important aspect of FDI is that the investor can control or at least significant influence such as management and production of the company overseas. In some case, when the firm may not want to make a direct investment, it will offer its management expertise for sale in the form of management contracts.